Silver Lake Group Divests $215 Million in Dell Technologies Stock Amid AI-Driven Growth

Silver Lake Group divests $148 million in Dell Technologies stock By Investing.com

Silver Lake Group, L.L.C., a major stakeholder in Dell Technologies Inc. (NYSE:DELL), recently reported significant stock sales totaling approximately $148 million. The transactions, executed on December 6, 2024, involved the sale of Dell's Class C Common Stock at prices ranging from $123.00 to $124.49 per share. The sales come amid Dell's impressive 83% stock surge over the past year, with the company now commanding a market capitalization of $86.7 billion. The sales were carried out by several entities within the Silver Lake investment group, including SL SPV-2, L.P., Silver Lake Partners IV, L.P., and Silver Lake Partners V DE (AIV), L.P. These sales resulted in substantial reductions in their respective holdings of Dell's Class C Common Stock. According to InvestingPro analysis, Dell's stock is currently trading near its Fair Value, with analyst price targets ranging from $115 to $220 per share. The transactions highlight Silver Lake's ongoing strategic management of its investment portfolio in Dell Technologies, where it holds significant influence as a key shareholder. InvestingPro has identified 13 additional key investment factors for Dell, including strong shareholder returns and future growth potential. Access the comprehensive Pro Research Report for detailed analysis of Dell's financial health and market position. In other recent news, Dell Technologies reported a 10% increase in third-quarter earnings, reaching $24.4 billion. This growth was primarily driven by the Infrastructure Solutions Group's focus on AI infrastructure and server solutions. The company also announced a 20% increase in its annual cash dividend, declaring a quarterly cash dividend of $0.445 per common share. In relation to equity sales, Dell issued 25 million Class C common shares upon the conversion of an equal number of Class A common shares by CEO Michael Dell. Analyst firms including TD Cowen, Mizuho (NYSE:MFG) Securities, Goldman Sachs (NYSE:GS), and Citi provided their ratings on Dell, with most maintaining positive outlooks despite some adjustments in price targets. In the AI sector, xAI announced plans to expand its Colossus supercomputer facility in Memphis by adding over one million Graphics Processing Units (GPUs). This significant development is expected to establish Memphis as a global hub for artificial intelligence. These are recent developments that reflect the strategic focus of Dell Technologies on AI infrastructure and server solutions, which has resulted in substantial growth in its Infrastructure Solutions Group's revenue. Despite a slight decrease in the Client Solutions Group revenue, Dell remains optimistic for fiscal year 2026, expecting growth in PC and server refresh cycles and increased demand for AI servers.

Silver Lake group sells Dell stock for $12.99 million By Investing.com

Silver Lake Group, L.L.C., a significant stakeholder in Dell Technologies Inc. (NYSE:DELL), has sold a substantial portion of its holdings in the company. According to the latest filing, Silver Lake disposed of shares worth approximately $12.99 million. The transactions took place on December 6, 2024, with shares sold at prices ranging from $125.28 to $126.15 per share. The sale comes as Dell, now valued at $86.69 billion, has demonstrated remarkable performance with an 83% return over the past year. The sales involved various entities associated with Silver Lake, including SL SPV-2, L.P., Silver Lake Partners IV, L.P., and Silver Lake Technology Investors IV, L.P., among others. Post-transaction, these entities continue to hold significant shares in Dell Technologies, with holdings distributed across different Silver Lake affiliates. These transactions reflect Silver Lake's ongoing management of its investment portfolio in Dell Technologies, as the firm continues to adjust its positions in the tech giant. In other recent news, Dell Technologies has reported a significant 10% increase in its third-quarter earnings, reaching $24.4 billion, primarily driven by the Infrastructure Solutions Group's focus on AI infrastructure and server solutions. The company's earnings per share rose to $2.15, marking a 14% year-over-year increase. Dell also disclosed the issuance of 25 million Class C common shares upon conversion of an equal number of Class A common shares by CEO Michael Dell. On the AI front, xAI announced plans to expand its Colossus supercomputer facility in Memphis by adding over one million Graphics Processing Units (GPUs), reinforcing the city's emerging status as a global hub for artificial intelligence. Dell Technologies, along with Nvidia (NASDAQ:NVDA) and Supermicro Computer, are also set to establish operations in Memphis. TD Cowen maintained its Hold rating on Dell, citing underperformance in the PC segment and delayed revenue from AI initiatives. Despite this, Mizuho (NYSE:MFG) Securities, Goldman Sachs (NYSE:GS), and Citi maintained positive ratings on Dell, adjusting their price targets accordingly. These recent developments highlight Dell's strategic focus on AI infrastructure and server solutions, contributing to a significant surge in its Infrastructure Solutions Group's revenue.

Dell technologies sees $54.3m in stock sales by Silver Lake entities By Investing.com

As the market digests this information, Dell Technologies (NYSE:DELL)' stock performance and Silver Lake's future moves will be closely watched by investors and analysts alike. The company maintains a strong market position with $94 billion in revenue over the last twelve months, though InvestingPro analysis indicates some challenges with gross profit margins. The company maintains a strong market position with $94 billion in revenue over the last twelve months, though InvestingPro analysis indicates some challenges with gross profit margins. The sales were conducted by various Silver Lake affiliates, including SLTA V (GP), L.L.C., Silver Lake Technology Associates V, L.P., and Silver Lake Partners V DE (AIV), L.P. These entities are substantial shareholders in Dell Technologies and hold significant influence, with each being a ten-percent owner and having director status. The transactions reflect a strategic move by Silver Lake, which has been a long-time investor in Dell. The sales involved multiple blocks of shares, with weighted average prices reported in different ranges. The largest sales occurred at an average price of $125.68 per share, with additional shares sold at prices up to $127.26 per share. Silver Lake's decision to sell shares comes as Dell Technologies continues to navigate the competitive landscape of the technology sector. The company's stock has been under observation by investors looking to understand market dynamics and shareholder activities. These transactions were part of a broader reallocation strategy, with Silver Lake entities also involved in in-kind distributions around the same period. The reporting entities have made clear that these transactions were not the result of any equity swaps, maintaining transparency in their dealings. InvestingPro data reveals that Dell's management has been actively supporting shareholder value through aggressive share buybacks and dividend growth, with the company raising its dividend for three consecutive years. Subscribers can access 12 additional ProTips and comprehensive analysis in the Pro Research Report. As the market digests this information, Dell Technologies' stock performance and Silver Lake's future moves will be closely watched by investors and analysts alike. In other recent news, Dell Technologies reported a 10% increase in third-quarter earnings to $24.4 billion, primarily driven by the Infrastructure Solutions Group's focus on AI infrastructure and server solutions. The company's earnings per share rose to $2.15, marking a 14% year-over-year increase. Dell also declared a quarterly cash dividend of $0.445 per common share following a 20% increase in the company's annual cash dividend. On the equity front, Dell disclosed the issuance of 25 million Class C common shares upon the conversion of an equal number of Class A common shares by CEO Michael Dell. This action is part of the company's internal equity structure. In the analyst circle, TD Cowen maintained its Hold rating on Dell, citing underperformance in the PC segment and delayed revenue from AI initiatives. However, Mizuho (NYSE:MFG) Securities, Goldman Sachs (NYSE:GS), and Citi maintained positive ratings on Dell, adjusting their price targets accordingly. In other developments, xAI announced plans to expand its Colossus supercomputer facility in Memphis by adding over one million Graphics Processing Units (GPUs). This move signifies the largest ever capital investment in the Memphis region. Fortune 500 companies Nvidia (NASDAQ:NVDA), Dell, and Supermicro Computer are also set to establish operations in the city, reinforcing its emerging status as a global hub for artificial intelligence. These are recent developments that reflect Dell's strategic focus on AI infrastructure and server solutions, contributing to a significant surge in its Infrastructure Solutions Group's revenue.